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Tue, Mar 10, 2009

Delta Announces Further Cuts To International Capacity

Warns Workers Of Need To 'Reassess' Staffing Needs

Telling workers "the worsening global economy continues to place additional pressure on the airline industry," on Tuesday Delta Air Lines leaders issued a memo to the over 70,000 people employed at the megacarrier, warning of further cuts to international capacity... and likely workforce reductions down the line.

"This morning at an investor conference in New York, we will announce plans to reduce international capacity an additional 10% beginning in September," wrote Delta CEO Richard Anderson and President Ed Bastian. "These reductions will be targeted to areas where we’ve seen the most revenue weakness -- the Atlantic and Pacific networks. Trans-Atlantic capacity this winter will be down 11–13% and trans-Pacific down 12–14% compared to winter 2008.

"To achieve these capacity changes, we will exit low performing markets, down-gauge certain routes, adjust frequencies, and move some markets to seasonal service."

The latest capacity cuts are in addition to Delta's previous plans to reduce the number of available seats nationwide by 6-8 percent in 2009. Noting the airline will soon release close to 2,100 workers through voluntary layoffs, Anderson and Bastian also warned the latest cuts will mean the need to further "reassess" staffing numbers.

"As in the past, voluntary programs are always our first consideration to adjust staffing needs," the memo states.

"We will continue to make decisions that are in the long-term interest of employees, customers, shareholders and the communities we serve. Remaining focused on our 2009 Flight Plan will be key to our success. This will require teamwork from all divisions and departments working toward this common goal... Together, we are building a stronger Delta."

FMI: www.delta.com

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